Today: 23 October 2025
Subscribe
Broadcom’s $10B AI Deal Sparks 90% Rally – What’s Next for AVGO Stock?
 ·  ·  ·  ·  · 

Broadcom (AVGO) Stock Skyrockets on $10B OpenAI AI Chip Deal – Analysts Target $460

by
23 October 2025
  • Current Price (Oct 23, 2025): Around $345, up about 1.5% for the day [1]. Broadcom’s stock has surged roughly 50–70% in 2025 on booming demand for AI chips [2].
  • Key Deals: On Oct. 13, Broadcom and OpenAI announced a 10‑gigawatt AI chip collaboration (worth an estimated $10B+) to build custom accelerators, sending AVGO up nearly 10% [3] [4]. On Oct. 14, Broadcom unveiled “Thor Ultra,” an 800G Ethernet networking chip for AI data centers [5] [6].
  • Earnings & Guidance: In early Sept (Q3 FY2025), Broadcom reported $15.95B revenue (+22% YoY) and $1.69 EPS [7], both above consensus. CEO Hock Tan said AI-related sales grew 63% to $5.2B in Q3 [8]. Management boosted Q4 revenue guidance to about $17.4B (up ~24% YoY) due to “strong and accelerating” AI demand [9] [10].
  • Analyst Sentiment: Wall Street is overwhelmingly bullish. Nearly 90% of analysts rate AVGO a Buy/Overweight [11]. JPMorgan raised its target to $400 and Piper Sandler to $375 [12]. Macquarie initiated at $420 [13]. The MarketBeat consensus target is about $372 (≈7% upside) [14]. Some bulls see far higher: KeyCorp and Barclays now eye $460–450 (30%+ upside) [15], calling Broadcom the “king of AI custom chips” [16]. By contrast, the most bearish recent target is just $345 (Wells Fargo) [17], implying only ~1% downside.
  • Expert Quotes: TS2.Tech notes Broadcom has been “riding the twin waves of AI chip euphoria and strategic acquisitions,” fueling its 70%+ rally [18]. OpenAI’s Sam Altman commented that “partnering with Broadcom is a critical step in building the infrastructure needed to unlock AI’s potential” [19]. On the cautious side, Bernstein’s Stacy Rasgon warned post-earnings that Broadcom’s “expectations were already high,” given its premium valuation [20].
  • Industry Context: The broader semiconductor and AI sectors are booming. The Philadelphia Semiconductor Index hit fresh highs on the AI wave [21]. Broadcom’s $1.6 trillion market cap makes it one of tech’s giants, behind only Nvidia ($2–3T) [22]. Unlike pure chipmakers, Broadcom also has a growing software business (VMware) contributing ~42% of revenue [23], giving it steady cash flow. The company pays a dividend (~0.7% yield) and generated record free cash flow ($7.0B in Q3) [24] [25].
  • Risks & Outlook: Despite the bullish run, risks remain. AVGO’s forward P/E (~50×) far exceeds industry averages [26], meaning even a small earnings miss could spark a pullback. Geopolitical jitters (recent U.S.-China tech tensions) and a CISPE antitrust complaint in Europe over the VMware acquisition keep investor nerves on edge [27] [28]. Technical indicators were overbought in mid-Oct, so some analysts view the recent pullback as healthy consolidation [29] [30]. Most agree that Broadcom’s future hinges on delivering on its AI promises.

In sum, Broadcom’s story is clear: a blockbuster AI partnership (OpenAI) and new AI product launches have turbocharged expectations. Wall Street’s upgraded price targets reflect this, with many analysts now modeling Broadcom as a major AI infrastructure winner [31] [32]. As TS2.Tech puts it, Broadcom’s perceived central role in the AI boom has led to “outsized returns” [33]. General investors should note the optimism – but also the sky-high bar. Even with consensus targets around $370–380, many eyes are on whether Broadcom can keep exceeding lofty growth forecasts.

Sources: Contemporary financial news and analysis from Reuters, MarketBeat, TS2.Tech and other credible media [34] [35] [36] [37]. These highlight Broadcom’s latest AI deals, earnings, and analyst commentary (including TS2.Tech insights) as of Oct. 23, 2025.

OpenAI x Broadcom — The OpenAI Podcast Ep. 8
Watch this video on YouTube.

References

1. www.marketbeat.com, 2. ts2.tech, 3. ts2.tech, 4. www.marketbeat.com, 5. ts2.tech, 6. www.reuters.com, 7. ts2.tech, 8. ts2.tech, 9. ts2.tech, 10. ts2.tech, 11. ts2.tech, 12. ts2.tech, 13. ts2.tech, 14. www.marketbeat.com, 15. www.marketbeat.com, 16. ts2.tech, 17. www.marketbeat.com, 18. ts2.tech, 19. ts2.tech, 20. ts2.tech, 21. ts2.tech, 22. ts2.tech, 23. ts2.tech, 24. ts2.tech, 25. ts2.tech, 26. ts2.tech, 27. siliconangle.com, 28. siliconangle.com, 29. ts2.tech, 30. ts2.tech, 31. ts2.tech, 32. www.marketbeat.com, 33. ts2.tech, 34. ts2.tech, 35. www.marketbeat.com, 36. www.reuters.com, 37. siliconangle.com

Tags:

Marcin Frąckiewicz Latest posts

CEO of TS2 Space and founder of TS2.tech. Expert in satellites, telecommunications, and emerging technologies, covering trends in space, AI, and connectivity.

  1. Booking Holdings (BKNG) Stock Rallies on Travel Recovery and AI Push – KeyBanc Eyes $6,450
  2. Deckers Stock Tanks on Weak Forecast – Is a Rebound Coming?
  3. Target Stock Crash: Shares Dive to Multi-Year Lows Amid CEO Shakeup and Retail Woes
  4. Uber Stock Rockets: EV Driver Grants & Drone Delivery Deal Ignite $140 Target

Related Articles

Las Vegas Sands Stock SKYROCKETS on Record Singapore Quarter – Is the Rally Just Beginning?
Previous Story

Las Vegas Sands Stock SKYROCKETS on Record Singapore Quarter – Is the Rally Just Beginning?

Apple Stock Could Explode After New AI Chip Launch and iPhone 17 “Supercycle,” Analysts Say
Next Story

Apple Stock Soars on iPhone 17 Buzz – Record Highs and $300 Price Targets in Sight?

Stock Market Today

  • Vanguard Information Technology ETF Concentrates Exposure in Nvidia, Apple and Microsoft
    October 23, 2025, 6:44 AM EDT. Investors eyeing broad exposure to the information technology space can take a straightforward route with the Vanguard Information Technology ETF (VGT). The ETF spreads across about 314 stocks in 12 sub-sectors, giving investors access to a diversified tech cohort without picking winners. Still, the fund's top holdings dominate: Nvidia, Apple and Microsoft account for about 43.6% of the portfolio, with weights of roughly 17.16%, 13.35%, and 13.09% respectively. The semiconductor segment, the largest sleeve at about 31.3%, reflects Nvidia's surge and AI-driven demand. Top contributors also include Broadcom, Oracle, Palantir and Cisco, illustrating how AI, data centers, software and cloud services shape the lineup. For AI-era tech exposure, VGT offers a simple, liquid vehicle.
  • AAK AB Q3 Profit Rises on 3% Sales Growth as Volumes Decline; Outlook for 2030
    October 23, 2025, 6:48 AM EDT. AAK AB reported a Q3 profit uptick as net sales rose 3% on stronger demand, though volumes fell. Profit attributable to shareholders reached SEK 909 million, with EPS at SEK 3.49 and pre-tax profit at SEK 1.22 billion. Net sales climbed to SEK 11.50 billion. By segment, Chocolate & Confectionery Fats rose 11% to SEK 3.90 billion, while Food Ingredients were flat at SEK 7.09 billion; Technical Products & Feed declined 10% to SEK 509 million. Total volumes dropped 7% to 510k tonnes (down 2% excluding Hillside). The group remains optimistic about its long-term 2030 ambitions. On the Stockholm bourse, the stock traded around SEK 266.60, down 0.23%.
  • XRP Price Forecast: Ripple Could Reach $7.50 by 2035
    October 23, 2025, 6:50 AM EDT. Across a $3 trillion crypto market, XRP bulls expect a sustained uptrend. The author's target around $7.50 by early 2035 implies about a 240% total return over the next decade and roughly 13% annualized gains. The case rests on XRP's role as a faster, cheaper cross-border payments option on the Ripple XRP Ledger and potential bank and fintech adoption. A shift toward spot XRP ETFs could unlock demand from retail and institutional investors by listing XRP on traditional exchanges, reducing crypto-exchange friction. If adoption expands and regulatory paths clear, XRP could attract more capital even amid ongoing crypto volatility.
  • Nu Holdings' Global Expansion and Profit Ramp Point to a Bold Five-Year Outlook
    October 23, 2025, 6:54 AM EDT. Nu Holdings is accelerating growth across markets and products. The company continues to add customers at a rapid pace and is expanding into new markets, while monetizing existing users with additional products. Despite macro headwinds in Brazil, its credit business is thriving. In 2025 Q2, Nu added 4.1 million customers (up 17% YoY), bringing totals to 122.7 million, including 107 million in Brazil - over 60% of the adult population. Growth is accelerating in Mexico and Colombia, and an eye toward the U.S. bank charter could broaden scale. Revenue rose 40% YoY (currency-neutral). ARPAC climbed 18% to $12.20, while cost to serve fell to $0.80. With ongoing cross-selling, double-digit revenue growth and rising margins look sustainable over five years.
  • Asian Shares Mixed in Cautious Trade as US-China Tensions Weigh on Markets
    October 23, 2025, 6:56 AM EDT. Asian markets closed mixed as investors weighed US-China tensions and mixed earnings, including a sharp drop in Tesla's profit. A White House official signaled export restrictions on China using U.S.-made software, ahead of a Xi-Trump meeting next week. Shanghai Composite +0.22% to 3,922.41; Hang Seng +0.72% to 25,967.98; Nikkei -1.35% to 48,641.61; Topix -0.39% at 3,253.78; Kospi -0.98% to 3,845.56. Australia edged higher; NZX-50 +0.53%. The dollar firmed; gold drifted below 4100; oil rallied over 3% after sanctions on Russia. U.S. stocks slid on Netflix and Texas Instruments results, with the S&P 500 and Nasdaq lower as investors awaited inflation data and the Fed outlook.
Go toTop